New Mexico car tax
New Mexico has no yearly car tax based on value. Registration is a flat fee by weight and age. When you title a car you pay a one-time 4% Motor Vehicle Excise Tax in place of sales tax.
No yearly car tax; only registration fees.
Buying a car in New Mexico: one-time tax
New Mexico motor vehicle excise tax — 4%. Your trade-in is subtracted before tax.
4% of the price after trade-in (3% before July 2019). For a private sale, NADA value is used if the declared price is under 80% of NADA. A 2026 bill (SB 60) proposed changes; enactment unconfirmed.
Registration and due dates
Registration costs about $27–$62 a year, by weight and age.
No yearly car tax. Registration renews every year or two.
Cut what your car costs in New Mexico
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
Does New Mexico charge sales tax on cars?
No gross receipts tax. A 4% Motor Vehicle Excise Tax is charged when you title the car.
Is there a yearly car tax in New Mexico?
No. Only registration fees.
Can I deduct New Mexico car taxes on my federal return?
Generally no. New Mexico has no yearly value-based car tax, and flat registration fees cannot be deducted as personal property tax. Sales tax on the purchase can be deducted instead of income tax if you itemize.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.